Silver rises further after Friday’s strong rally and hits new record high

Silver moves deeper into uncharted territory and hit new record high ($57.84) in early Monday trading, in extension of Friday’s strong acceleration higher (up 5.6%, the biggest daily gain in nearly 8 months) which broke and close above previous all-time high at $54.64.

Weaker dollar on fast growing bets of Fed December rate cut and expectations that new Fed Chairman will more comply with President Trump’s dovish view on monetary policy, was mainly behind the latest strong increase in demand.

Technical picture turned to full bullish setup after completion of $54.64/$45.53 corrective phase, with completion of bullish failure swing pattern on daily chart and break above the upper boundary of near-term bull-channel, opening prospects for further advance and unmasking Fibo projections at $5812 (138.2%), 59.20 (150%) and psychological barrier at $60.

However, overbought daily studies warn of increased headwinds that bears may face at this stage, which may slow the action.

Repeated daily close above previous record high is seen as minimum requirement to keep bulls intact, with (so far) long tail on today’s candle suggesting that bulls firmly hold grip.

Res: 57.84; 58.12; 59.20; 60.00
Sup: 56.80; 56.42; 55.85; 54.68